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Leeds’ luxury shopping destination bought by Hammerson

Real estate firm Hammerson have acquired luxury retail centre, The Victoria Quarter, in Leeds for £136m.

Hammerson have bought the site from real estate services and investors Kennedy Wilson to establish a strong presence in Leeds.

The deal has come alongside proposals from the buyer to develop the Eastgate Quarters, which is situated opposite Hammerson’s new purchase.

The Victoria Quarter is a destination shopping site that houses luxury brands such as Louis Vuitton and Vivienne Westwood in grade II listed buildings.

The retail centre is comprised of over 70 stores and cafes, with two main streets which accommodate luxury brands along the “Country Arcade”, and stores such as Kurt Geiger and Whistles on “Queen Victoria Street”.

Hammerson hope to adopt the success of the complex and bring new brands to the Yorkshire city to meet growing consumer demand.

David Atkins, Chief Executive of Hammerson, commented: “Our purchase of the Victoria Quarter is a further demonstration of our commitment to Leeds, following the announcement of our plans for Eastgate Quarters in July.

“Victoria Quarter is a retail landmark in Leeds, and our ownership of the scheme will help us to develop a comprehensive retail offer for Eastgate Quarters and expand the luxury and aspirational retail offer for the city.”

Passing rent for The Victoria Quarter is £7.2m, and initial yield on the purchase currently stands as 5.25%, while store take-up at the centre is 100%.

The Eastgate Quarter proposals for a 36,000 sq ft space, anchored by a 24,000 sq ft John Lewis store, will open up a thoroughfare to the existing complex.

The additional development is expected to begin in 2014, with the completion date for the first phase set for 2016.

This was posted in Bdaily's Members' News section by Miranda Dobson .